Marble - thanks for your reply. I did look at refinancing the mortgage, but I cannot refi today because lenders require two years of self employment, and I only have a year. By the time I have two, I'll be four years away from selling, and the ROI on refinance is about four years at today's rates (rates will likely increase a year from now). To get around the two years requirement, I would have to pay a higher rate, which isn't worth it. Good suggestion, though.
Regarding HSA - fascinating idea! I did read the article (and the one on this blog) but not sure it would help in my situation. My family buys our insurance through the NY Health Insurance Exchange, we pay a lot for a platinum plan due to some long term health issues. So, a high deductible plan usually isn't worth it for us, we get a plan with a low max out of pocket cost, and end up hitting that within the first 3-4 months of the year. I think the HSA requires a high deductible plan. Worth more research.
Nobody, thanks for your reply. The income is contractually guaranteed for six years (thus the six year retirement target), BUT, nothing in this world is ever guaranteed, and there are out clauses for certain unlikely circumstances. For purposes of this exercise, let's assume that it will last six years. It could go away tomorrow or could expand further, too. If those things happen, I just build a new plan with new assumptions.
Regarding lifestyle inflation. Good call, we've been there, done that, and we're now unwinding the effects of earlier affluenza. We aren't quite there yet (which is why we still have car loans), but we killed all our student loan and credit card debt years ago when we were making much less, and we're both now fully committed to the freedom that comes from an early retirement. The only question is, how much is enough income for retirement? That's where we disagree at the moment, where I say we need about $40k, and she says about $75k. As we get closer to the date, our results will help us decide whether I should keep working for another year, or shift to a more leisurely lifestyle. The end of the contract in 2021 will be a good point to make that decision, too.
Thanks!